POLS 207 Chapter Notes - Chapter 14: Regressive Tax, Flat Rate
12 Dec 2016
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Chapter 14: the politics of taxation and finance. Gross domestic product (gdp): total value of all the goods and services produced in the. Total governmental spending amounts to about 34 percent gdp. Federal spending accounts for 22 percent and state and local spending add another. State and local governments direct a majority of their spending towards education, health and welfare, police and fire, and transportation. Taxes are the largest source of revenue in the united states. Tax burden: devote the largest proportion of their income to taxes. Progressive: taxes that require high income groups to pay a larger percentage than that of lower income groups. Regressive: taxes that take a larger share of income from the low income groups. Proportional: taxation at equal percentage rates, regardless of an income level. Property taxes are the largest source of revenue for local governments in the united states.
